Mirvac buys Camden land as Chinese-backed firm makes lucrative exit

Chinese groups are cashing out of the property market as local and international buyers pile in.

Mirvac has bought an 80-hectare parcel of zoned land in Cobbitty, Camden from China-linked property funds manager Roberts Jones.

Property developer Mirvac has snapped up an 80-hectare parcel of zoned land in Cobbitty in the western Sydney suburb of Camden from Chinese-backed property funds and development firm Roberts Jones in one of its largest purchases this year.

The relatively unknown Robert Jones grabbed headlines when it earlier this year bought a near $500m land parcel, bordering the planned Western Sydney Airport from Sydney’s property-developing Medich family.

Roberts Jones took ownership of an undeveloped 344ha parcel, which is one of the largest sites beside the $5bn Nancy Bird Walton Airport, in that deal.

An earlier scheme by a fellow Chinese-backed company would have seen a $22bn city built but Robert Jones has since lodged initial plans for industrial warehousing and attempted to sell a small portion of the site.

In 2017, it was reported that then property tycoon Ron Medich and his property developer brother Roy Medich, were in talks on a potential $500m sale of their holding beside the proposed airport at Badgerys Creek.

That sale was to be to companies associated with Chinese property billionaire Shen Yuxing, also known as Tin Ching Shum. Mr Shum is the majority shareholder of developer Boyuan Holdings which is undertaking projects across NSW and is listed on the Australian Securities Exchange.

Boyuan acts as development manager for Roberts Jones, which had as directors Bo Gong and (Bob Gong) and Cheng Jia Pan (Jonathan Pan), both Australian citizens who were former strategic advisers of the listed company.

But the original deal for it to buy the airport land did not go ahead and a fresh syndicate was assembled. Companies associated with Roberts Jones Funds Management bought the airport site for $499.95m, according to CoreLogic.

The Robert Jones sale of the Cobbitty land represents a lucrative exit for the Chinese-backed firm, which quietly bought the parcel for $232m in 2018 from McIntosh Bros.

International institutions and Australian developers are jockeying for position on major assets being unloaded by big Chinese developers as the offshore giants wind back some of their more ambitious schemes in major capitals.

Hong Kong-based Baring Private Equity Asia is circling the luxurious Hilton Hotel Sydney in a play worth up to $540m. It is buying the property from Chinese-founded trading house Bright Ruby, which picked up the George St hotel back in 2015 for $442m.

Chinese groups swept into the market with a wave of projects in the middle of the last decade with a plethora of deals spanning luxury apartments and hotels with many successfully selling units to offshore buyers in the last boom.

But many have wound back their ambitions in the local market, partly due to China’s own property crunch but because local conditions have proven tougher than expected, with some looking to sell off unwanted stock and land parcels that they no longer want to develop.

Sellers include China’s state-backed Greenland, which has quietly offered several stages of its massive mixed-use residential development Park Sydney, in Erskineville, in Sydney’s inner-west, with local developer Stockland leading the race for that $320m parcel.

HNA Group last month sold a major conference centre and associated land in Melbourne that fell into the hands of receivers after being hit by the Chinese government’s crackdown on mainland companies that thrust into global real estate markets.

The Aitken Hill centre was owned by an offshoot of the debt-laden Chinese conglomerate and went to Singapore-listed Ho Bee Land for $142m.

The Cobbitty site is located within Sydney’s south west growth corridor and sits next to the suburbs of Oran Park and Harrington Grove. The estate has the potential to deliver about 950 land lots and is near Mirvac’s recently completed Crest project at Gledswood Hills.

Mirvac head of residential Stuart Penklis said Mirvac plans to continue its legacy in south west Sydney by bringing to life yet another estate.

“We’re excited to once again be in a position to contribute to Sydney’s rapidly evolving south west corridor. We look forward to drawing on our wealth of experience in the delivery of greenfield sites, together with our thorough understanding of the local customer base, to bring to life a vibrant, connected new neighbourhood,” he said.

The first development approval for the first 150 lots is expected shortly.

A spokesman for Roberts Jones said site had been identified as land that would be sold “in-line with Robert Jones’ strategic development plans for its projects in southwest and western Sydney”.

“Roberts Jones has appointed BHL as the lead development agent for its projects in south western and western Sydney,” he said.

Colliers agent Frank Oliveri handled the deal and said the transaction shows the strength of the residential development site market in western Sydney.

“This property was highly sought after by both institutional developers and a number of the large home builders in the region. Residential lots have increased by over 25 per cent in many parts of the market and developers have paid higher prices to secure land stock in the short to medium term,” he said.